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  1. United Bank of India’s net loss widens to Rs 389 crore in Q1

United Bank of India’s net loss widens to Rs 389 crore in Q1

State-run United Bank of India on Thursday said its net loss widened to Rs 388.68 crore for the first quarter ended June 30 against a net loss of Rs 211 crore a year ago with the lender’s operating profit falling over 33% year-on-year.

By: | Kolkata | Published: August 10, 2018 3:17 AM
United Bank, United Bank of India, first quarter, Kolkata bank, non-performing assets, market Gross non-performing assets (NPAs) in absolute term declined 8.35% q-o-q to Rs 15,169.21 crore from Rs 16,552.11 crore in the March quarter last fiscal.

State-run United Bank of India on Thursday said its net loss widened to Rs 388.68 crore for the first quarter ended June 30 against a net loss of Rs 211 crore a year ago with the lender’s operating profit falling over 33% year-on-year. The Kolkata-based bank’s asset quality, however, improved in the June quarter on a q-o-q basis. Gross non-performing assets (NPAs) in absolute term declined 8.35% q-o-q to Rs 15,169.21 crore from Rs 16,552.11 crore in the March quarter last fiscal.

Gross NPA as a percentage of total loans fell 137 bps to 22.73% from 24.10% during the previous quarter. Similarly, net NPA ratio fell by 132 bps sequentially at 15.17%. Operating profit fell 33.25% y-o-y to Rs 282.77 crore as the bank’s total income witnessed a decrease of 10.6% y-o-y to Rs 2,549.71 crore compared to Rs 2,852.61 crore a year ago. Although the bank’s net interest income (NII) rose by a whopping 114% y-o-y to Rs 545.30 crore, its non-interest income decreased by more than 49% y-o-y to Rs 394.69 crore due to lower treasury gains.

The bank said its overall profitability was affected due to a spike in mark-to-market provisioning by 195.78% y-o-y due to an “adverse market scenario”. The lender’s provision and contingencies stood at Rs 856.30 crore, up by close to 13% y-o-y. Provisions for NPAs, however, fell 4.75% y-o-y to Rs 697.75 crore against Rs 732.53 crore a year ago. Provision coverage ratio improved to 56.91% from 53.48% a year ago. The bank’s NIM stood at 2.36%, an increase of 132 bps y-o-y.

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